All Forum Posts by: Jonathan Shepard

Thanks for the quick reply. I’m surprised it was that much of a drop in your score for such a low utilization rate. I am putting some cash in the deal but do not have the full amount to cover. As mentioned I am trying to utilize this strategy to just get my foot in the door and get some experience.

If all aspects of a BRRRR deal have been reviewed and appear to work ("all in" budget including holding costs work out to be 70-75% ARV), what are some of the risks or pitfalls associated with funding a deal with a few small lines of credit and low interest credit cards?

I see this being beneficial on one hand because I avoid paying points for hard money but have a similar interest rate as well as having cheaper closing costs because I will be the only one of the deed.

I also see where this could be an issue during the refi due to higher DTI. This also does not seem very scalable but I'm just trying to get some experience at this point.

Thanks in advance for any help or advice.

Hello - I am currently under contract on my first BRRRR deal and am looking to secure hard money financing for the rehab portion of the project. I have placed all of the documents in a Shared Google Drive folder for more in-depth review if needed but I have the high-level numbers listed below. Thanks in advance for your help with this and if you have any questions or need any additional information please let me know. If you cannot or will not fund this deal I would like some feedback as to why if possible.

Property: 2868 Ralston Rd Mobile, AL 36608
Purchase Price: $20,500 (personal cash)
Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total
ARV: $100,000 (comps support higher but staying conservative)
Rental: $850 (Market likely supports $900+ but staying conservative)
Construction Insurance: Plans in place to take out a construction loan
for the rehab $400 for a 3-month term
Tenant Occupancy Insurance: Plans in place to secure a policy at $900 per year
Refinance: I have been pre-qualified by quicken loans for a 75%
cash-out refinance at ~5% interest

Total kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)

Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month)

COC ROI after refinance: 12%

Hello - I am currently under contract on my first BRRRR deal and am in the inspection contingency window which closes 8/15. I would really appreciate some help in looking over the numbers on this house as I feel that I have done all the due diligence I know how to at this point. I have all of the documents in a Shared Google Drive folder for more in-depth review if needed but I have the high-level numbers listed below. Thanks in advance for your help with this and if you have any questions or need any additional information please let me know.

Property: 2868 Ralston Rd Mobile, AL 36608
Purchase Price: $20,500 (personal cash)
Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total
ARV: $100,000 (comps support higher but staying conservative)
Rental: $850 (Market likely supports $900+ but staying conservative)
Construction Insurance: Plans in place to take out a construction loan
for the rehab $400 for a 3-month term
Tenant Occupancy Insurance: Plans in place to secure a policy at $900 per year
Refinance: I have been pre-qualified by quicken loans for a 75%
cash-out refinance at ~5% interest

Total kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)

Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month)

COC ROI after refinance: 12%

Hello - I am currently under contract on my first BRRRR deal and am in the inspection contingency window which closes 8/15. I would really appreciate some help in looking over the numbers on this house as I feel that I have done all the due diligence I know how to at this point. I have all of the documents in a Shared Google Drive folder for more in-depth review if needed but I have the high-level numbers listed below. Thanks in advance for your help with this and if you have any questions or need any additional information please let me know. 

Property: 2868 Ralston Rd Mobile, AL 36608
Purchase Price: $20,500 (personal cash)
Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total 
ARV: $100,000 (comps support higher but staying conservative)
Rental: $850 (Market likely supports $900+ but staying conservative)
Construction Insurance: Plans in place to take out a construction loan
for the rehab $400 for a 3-month term
Tenant Occupancy Insurance: Plans in place to secure a policy at $900 per year
Refinance: I have been pre-qualified by quicken loans for a 75%
cash-out refinance at ~5% interest

Total kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)

Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month) 

COC ROI after refinance: 12%